Stock markets have rebounded from recent sell down and there is also no surprise of any QE3 from US Fed. Is stock market will continue to go down or worse is over, that the question in everybody mind at the moment.
The problem of slow US economy recovery in particular the employment situation and EU debt issue still there without any concrete measures implemented to improve on those at the moment. Governments are looking at measures and policies to resolve that and probably might take times before some concrete plan being rolled out.
Economic data wise, US still have a series of mixed result which cannot conclude it is going into recession or going for a strong recovery either. The debt issue in EU is also slowing down the economy of the EU countries. Meanwhile Asian countries still showing some resilience in their economic growth despite the impact of US and EU issue ( export orientated countries might enter technical recession with the slowing down in US and EU ) while inflation in those regions probably hitting the peak value.
Stock markets wise have seen selling down eased as data has shown ( in particular Asian ) funds selling has reduced. What need to be seen and considered bottom is probably when no more funds selling. On the other hands, some of the funds were detecting scooping up battle down stock prices lately too. Stock markets could be heading into consolidation phases. A strong rebound could only be observed when funds come rolling back ( with probably some good news or indication that macro level issues have resolved ).
The battle down stock prices have made valuation becomes attractive given that Singapore will not go into recession and long term investors should be start accumulating on weakness. Short-term investors/traders, consolidating market will move in range bound. Trading opportunities will be there from support to resistance levels.
